Crude Soars 5%; Ford and CAW Begin Talks; China Offering 6 Billion Yuan Sale; IBM Reiterates 2009 Earnings; Australia’s Business Confidence Elevates Asian Stocks; France Telecom and Deutsch Telekom Planning U.K. JV; Mobius Warns About Brazil Stock Sale

U.S. stocks headed for a higher open on Monday as solid results from major European banks and expectations of a sales rebound for Ford Motor Co reinforced hopes that the recession is moderating.

Investors are breathing a sigh of relief that 2008 is over, but they shouldn’t get too comfortable. After all, with a worldwide recession under way, investors can expect acceleration in corporate bankruptcies in 2009.

But the question is – which ones?

In the financial services sector, 2008 was a year of spectacular failures:

• Bear Stearns Cos. and Merrill Lynch & Co. Inc. were absorbed by JP Morgan Chase & Co. (JPM) and Bank of America (BAC), respectively.
• Lehman Brothers Holdings Inc. (OTC: LEHMQ) filed for bankruptcy protection.
• And financial-sector giants American International Group Inc. (AIG) and Citigroup Inc. (C) were both bailed out a vast expense to taxpayers.

If at the start of 2008 I’d written that the entire New York investment banking business would disappear during the…

Chrysler LLC stunned its employees and dealers early yesterday (Thursday), announcing it was suspending all manufacturing for at least a month, and tightening wholesale credit terms to dealers. By the end of the day, Chrysler was joined by its two other Big Three brethren – General Motors Corp. (GM) and Ford Motor Co. (F). – which also shuttered factories.

Toyota Motor Corp. (ADR:TM) may not need a government bailout, but it’s hurting badly. The world’s top automaker said it will announce a revised 2009 sales forecast at its end-of-the-year news conference Dec. 22. The company is expected to slash at least 1 million cars from its original forecast of 9.7 million units, Reuters reported.

The US auto industry is coming apart at the seams, says Eric Roseman. The ‘Big Three’ are bleeding profusely, and face bankruptcy without a government rescue. If one of General Motors (NYSE:GM), Ford (NYSE:F) and Chrysler is allowed to fail, Eric says the stock market will crash through its 2002 lows. This means investors should stay underweight stocks for the time being.

The U.S. government is looking for ways to facilitate a merger between General Motors Corp. (GM) and Chrysler LLC, in the hopes of keeping the once vibrant industry afloat during a time of crisis. But Uncle Sam’s credit card is close to maxed out and a bailout for the auto industry could open the door for other troubled industries to come calling.

Embattled carmaker General Motors Corp. (GM) is planning thousands of additional white-collar job cuts and mulling over the sale off some of its brands, sources told the Wall Street Journal.

WTO’s Global Trade Deal; Ford’s Lowered Expectations; Surprise Decline in Jobless Claims; Oil Drags on Hang Seng; Wider Loss for B&N; Big Oil Spends $1.3 Million in 1Q Lobbying; Bill Miller Joins Ichan in Pressuring Yahoo; IEA to Probe World’s Oil Supply; Medtronic Coughs Up $75 Million to Settle Suit.

With earnings season starting to wind down, investors are not anticipating many new surprises.